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Purpose

The purpose of this study is to address the key factors for the sustainable process of long-term recovery from disaster, with focus on interdependent decisions of various players.

Design/methodology/approach

The consistency among strategies of recovery players, who make a decision based not only on direct motive but also on various complex motives and interactions with other players, is considered. Interactive decision-making during the housing reconstruction project in Sri Lanka after the 2004 Indian Ocean tsunami is analyzed using game theory.

Findings

Regarding two important decisions defining the result of recovery, players’ possible decisions are evaluated, and by using the game theoretic approach, the reasons for poor output and the conditions to shift equilibrium to that which is suitable for the long-term goal of recovery are discussed.

Originality/value

These analyses show that motive compatibility among players should be considered when we design processes for recovery from disasters.

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